Is Slack overpriced now that the market is aware of Salesforce might purchase it?

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The stock market is technical Today, but we're here anyway because there is a lot of stuff and money to talk about in the world of startups. This morning let's moan about the new valuation of Slack and what the market is telling us about what the venerable SaaS company is really worth.

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Recall that Wednesday came the news that Salesforce was considering buying Slack, a move that has potential benefits and some question marks.

The perks might include bringing Slack's Start Mindshare for Salesforce and bring Salesforce Businesses reach Slack. In terms of questions, it's not clear how Slack fits into Salesforce's CRM and platform game exactly. Salesforce's Slack-ish competitor, Chatter, hasn't taken control of its market in the more than ten years since its release (here TechCrunch about its launch in 2009), making Slack's possible home in Salesforce slightly suspect .

Still, Slack investors welcomed the concept of Salesforce paying for their company, while the latter company's investors dropped nearly $ 20 off its share price, perhaps concerned about exactly what the Slack owners were considering.

So price. What's Slack Worth? This is a question that is fun both academically and for understanding the current dynamics in the software M&A market. What do you have to pay to take a large pawn off the board of the software market?

Let's take a look at what we can learn from Slack's pre-news price and its current, changed rating.

What is it worth

Here's a table of the value of Slack before and after Salesforce messages to give you an idea of ​​the impact the reporting made: